4 home improvements that may affect your homeowners insurance — part 2


Many of today’s homeowners have been inspired by houseflipping shows to learn practical tips and savvy tricks to either increase their home’s resale value or, for those who prefer to stay put, refresh their living space for its long-term use.

While these shows highlight the newest trends that resonate with new buyers or help customize a house to an owner’s current needs, what they don’t tell you is how remodeling might affect your homeowners insurance coverage.

“Building an addition and adding square footage, renovating a kitchen or bathroom, or other significant changes made to a home will increase its value,” Jane Li, Mercury Insurance director of product management said. “One thing that can’t be overlooked, however, is that these renovations will also increase the home’s replacement cost if it is damaged or destroyed, so it’s very important that homeowners also adjust their insurance policies to ensure the home is properly insured in the event disaster strikes.”

Here are four improvements Li recommends discussing with your insurance agent before making upgrades.

2. Installing a pool

Pools are a great way to cool off when temperatures climb and are also a nice centerpiece for outdoor entertaining. However, putting in a pool also adds to your liability risk, which will increase your homeowners insurance premium.

“If you decide to install a pool, be sure to also build a fence with a locking gate around it,” said Li. “The fence should not connect to the dwelling and, if possible, it should be built using fireresistant material.”